Beijing No.2 Intermediate People's Court recently rendered its first instance judgment on the software copyright infringement case, ordering defendant Beijing Hongguang Shiji Trade Company to cease infringement and indemnify 100,000 yuan in damage and court costs 15,000 yuan to Microsoft Company.

The defendant Beijing Chaowai Yuexiu PC Market Company is the operator of Bainaohui, which is a well-known computer store in China, and another defendant Beijing Kaiye Company is the owner of Bainaohui. As the case involves the legal liability of Bainaohui, it has received widespread attention.

Microsoft found the merchants involve the case load unauthorized software onto new computers in Bainaohui, then sent a lawyer's letter to defendant and urged to stop infringement. Even if Microsoft took measures like that, it still could buy notebooks which were installed piracy software. Microsoft then brought the case to the court.

The court held that Beijing Hongguang Shiji's action of loading piracy software onto computers and distributing infringed Microsoft's lawful right, and shall stop the infringement and make compensations for damages. The court also held that the other two defendants have performed their management obligations, so they shall not bear joint liability.

(Source: SIPO 2013-01-05)